The ways to manage bank account

Whether you have a private bank account or a corporate bank account for your business needs, it is essential to have convenient access to your funds and constant control over your account. 

 

The three most common types of tools used to access and manage your bank account are:

• Online banking
• Using a personal banker
• Authorising someone to manage your bank account for you.

Online banking, also known as virtual, internet or e-banking, is an electronic payment system that offers the clients of a bank or other financial institution the ability to handle a wide range of financial transactions by using the bank's website. As online banking is highly dependent on internet access and take-up.

A personal banker is a bank employee, usually working in retail banking, who helps customers manage their funds and offers different solutions for their financial needs, such as opening savings or other accounts, obtaining car or mortgage loans, investing in money markets. Personal bankers usually work with private customers to help them with their banking-related questions or issues. 

The limitation to act is regulated by a power of attorney. For a business, this authority can encompass the ability to access financial accounts, sell securities or place new orders and write cheques, although the agent may also perform a range of other activities to keep the business running. For security reasons, a power of attorney should strictly limit the agent's activities or access to specific accounts. The main advantage of a power of attorney for a business bank account is that it gives you the security of a back-up plan in case the owner of the business or other authorised persons are unable to fulfil their tasks.

You also can combine some of mentioned ways. Which is more suitable for you?

Types of Offshores

If you are going to establish company, open bank account or invest then you should know that you can do it not only in your home country. Offshore is brilliant  opportunity to do that. The term may be used to describe foreign banks, corporations, investments, and deposits.

Offshore Investing

Offshore investments are the investments which is in the country other than the country in which the investor resides. It is compulsory to record most of these offshore investments legally and prove that you are not go in money laundering.

Advantages: tax benefits, secrecy, asset protection.

Offshoring Business

Offshore means located or situated beyond national boundaries. Offshore company is regulated by the Law as other companies.

The benefits of offshore company depend on where you are located and which country you choose to establish company. Paying lower taxes means that you can keep the larger profit without a lot of money investment. There are two main offshore company structures: International Business Company (IBC) and Limited Liability Company (LLC).

Offshore Banking 

Offshore banking is banking done in a land that isn’t your home country. Foreign banks can be great backups and may meet some of your more cursory needs. The services that they provide could be more wider.

Advantages: protection against local, political,financial instability or instability of currency, tax benefits.

Note that there are thirty countries on the EU offshore blacklist created by the European Commission. Have to find information about that controversial moment? You can contact Confidus Solutions.

Myths about offshores

Many people still have myths about offshore company.  Offshores become more and more popular and available in our global world.

We want to mention some myths about offshores. Offshore could be bank account and company. 

Tax reduction is the only benefit of an offshore company.

Tax reduction is one major benefit of an offshore structure, but it's not the one. Setting up an offshore company is a good way to diversify economic, litigation risk and protect assets. Offshore is relevant to small start-up and individually owned companies, because most offshore jurisdictions have lower minimum capital, as well as simpler filing requirements.

Offshore is for criminals.

Willingness to get benefits from setting up business  abroad, from beneficial tax system and more comfortable life abroad doesn't make you criminal. Supposedly there are some unlawful funds deposited in tax haven jurisdictions but they make up a small percentage indeed of the total criminal proceeds arising from and within the high tax jurisdictions. Note that banking secrecy is not working when it comes to illegal activities.

Every offshore banks can guarantee anonymity after opening account.

Whatever account name or number you are assigned is, you will not remain anonymous to the bank.

To have offshore company or bank account you should be a reach man.

Ofcourse, banks set requirements for opening bank account, but of mainly investment profile looking for deposits starting with US $100,000. Some smaller banks are still interested in a regular middle class customer.

It is difficult to manage the offshore because offshore banks is located in remote region.

Nowadays, technological progress makes it easy to do, even if many offshore jurisdictions are indeed small islands in the ocean. For bank account you can use e-banking(online banking). 

Did you hear some myths about offshore company or bank account which is not mentioned in our article?

What is Royalty?

Royalties are payments made by one party (the licensee or the franchisee) to the other party who owns a particular asset (the licensor or the franchisor) for the right to use that asset permanently. Royalties are usually negotiated as a percentage of the gross or net income from the use of the asset or at a fixed price per unit sold, but there are other forms and compensation rates. Royalties are entitled to aggregate future royalty payments.

The license agreement defines the terms under which resources or property are licensed by one party to the other, either without limitation or for a limited duration, business or geographic area, product type, etc. License agreements can be regulated, especially if the Resource is owned by the government, or they can be private contracts that follow a general structure. However, some types of franchise agreements have comparable terms.

Gross sales

This is the most common type of royalty structure. In this royalty setting, franchisors charge a certain percentage of the franchisee's gross sales. The main advantage of this structure is that it gives the franchisor an incentive to participate proportionally in the growth of the franchisee. There are usually three types of gross sales:

Fixed Royalty

This is the most common permanent franchise contract. Under this royalty structure, the franchisee will be required to pay a fixed percentage of the sales to the franchisor, regardless of the franchisee's sales or income. It is the simplest fee structure for administering royalties.

Increasing Percentage

Under this type of contract, as a percentage of gross sales, franchisors charge a premium to franchisees who want to open a head office. Location is one of the most important factors that influence the success or failure of a franchise. Some marketplaces are more likely to generate more sales than others.

Decrease Percentage

Under the percentage reduction model, the franchisee pays a smaller percentage of gross sales as total gross sales increases. This model is beneficial to both the franchisee and the franchisor. Because it provides additional rewards for increased performance and encourages franchisees to grow and be more profitable, which is a good result for franchisors as well.

Percentage per transaction

In this type of royalties, franchisors charge a fee based on each product sold or transaction made. This type of royalty structure is widely used in some industries, such as the hospitality industry or the automotive industry. Franchisees who collect this type of royalties often use point-of-sale systems that do the calculations automatically.

Split Profit

In a copyright-shared profit structure, the franchisee's total profit divided between the franchisor and the franchisee by agreement, such as 40/60. Although distributed rewards are not common, they are less supported by franchisees.

No Royalty

Franchisees will not charge any franchise fees under this agreement. The franchisor only generates revenue from the sale of products to franchisees. It generates income from a manufacturer or supplier who has established a franchise channel as a retail chain selling their products. Recently, Amul granted its retailers a franchise without any consideration.

What is double taxation?

In the business world, double taxation is very common especially doing offshore company. But what that word even means?

What is double taxation?

Double taxation is the collection of taxes in two or more jurisdictions on the same declared income, assets or financial transactions.

In other words, it is when your business is registered in one country, but you do business in another and you pay taxes for both of the countries.

Double liability can be decreased in many ways, for instance:

the principal tax jurisdiction may exempt foreign income;

the main tax jurisdiction may exempt foreign-source income if it has been taxed in another jurisdiction or exceeds a benchmark to exclude the jurisdictions of tax havens;

the principal tax jurisdiction may tax foreign-source income, but may provide for the payment of foreign-jurisdictional taxes.

Another approach for affected jurisdictions is to enter into a tax treaty that sets out rules to avoid double taxation.

The term "double taxation" may also refer to double taxation of income or activities. For example, in some jurisdictions, corporate profits are taxed twice - once when the corporation earns and once again when distributed to shareholders in the form of dividends or other distributions.

There are 2 types of double taxation which are economical and juridical.

Double economic taxation

Double economic taxation involves situations where people or companies pay two or more taxes from a single tax base. The most common situation where double economic taxation arises is when a company pays taxes on its profits and then pays dividends to its shareholders. This amount of dividends is also taxed, but now it is a tax on dividends.

International double taxation

International double taxation occurs when a person pays taxes on an object in different countries at the same time. States may apply this type of double taxation based on the basic or territorial principle of residence. The State may rely on the principal or the residence when it has established that the taxpayer is their place of residence. States can rely on the territorial reference amount when they discover that profits are made in their own country, that is, within their territory. For example, country A has a commercial branch in country B, country A taxes its residents worldwide. The enterprise will pay taxes to State B based on its source and to State A based on residence of the multinational enterprise.

If you need more information about double taxation, feel free to contact us: http://confiduss.com/en/

What is anti-money laundering?

Money laundering

Money legalization process when a person takes actions that conceal the source of funds to make their nature lawful is called Money laundering.

Anti-money laundering

On the other hand Anti-money laundering involves a set of measures aimed to prevent usage of the financial system or banks for money laundering or terrorist financing. AML measures and tools are globally standardized and implemented by international and national institutions, banks and business. Each bank and other financial institution, as well as other business entities, must comply with laws and regulations regarding money laundering. To obtain a banking license, the bank must confirm compliance with the AML requirements and present the AML policy. AML policies can be improved as needed or in response to recent AML trends and recent practices.

Goals of AML policy

The anti-money laundering policy was introduced with the main objective of establishing a comprehensive framework for the fight against money laundering, terrorism, corruption and other financial crimes. The second is to protect the public from money laundering and to ensure that the organization complies with relevant laws and regulations.

The AML policy is designed to provide transparent and traceable cash flows that need to be maintained to prevent terrorist financing and control their use by suspected terrorists and criminal groups, as well as their own financial resources. Full transparency and traceability of funds transfers are an important and valuable mechanism in the process of prevention, identification and investigation of money laundering and terrorist financing. If the bank discovers a suspicious transaction, it may freeze funds until the client provides explanatory justification.

Countries and offshores

Offshores are associating with terms foreign banks, corporations, investments and deposits. Offshore is a synonym for some countries. 

Let’s take a look at some of countries that are good for offshore.

The United Arab Emirates or the UAE offers a unique combination of a high-quality lifestyle, a fast-growing economy and high standards of comfort and safety.

Panama is considered a very secure pure tax haven. Offshore companies are not subject to income taxes, corporate taxes, or local taxes.

The British Virgin Islands. An advantage to offshore banking customers and offshore companies incorporated in the BVI is that there are no exchange controls. 

St. Kitts and Nevis Federation offers tax-friendly formation of offshore limited liability companies, trusts, and foundations, along with excellent offshore banking and insurance services.

At the moment, there are thirty countries on the EU offshore blacklist created by the European Commission. It includes countries such as Anguilla, Andorra, Antigua and Barbuda, the Bahamas, Belize, Barbados, Bermuda, Brunei, the British Virgin Islands, the Cook Islands, the Cayman Islands, Grenada, Guernsey, Hong Kong, Liechtenstein, Liberia, the Maldives, the Marshall Islands, Mauritius, Montserrat, Monaco, Nauru, Niue, Panama, Saint Vincent and the Grenadines, Saint Kitts and Nevis, the Seychelles, the American Virgin Islands, the Turks and Caicos Islands and Vanuatu.

As you see, there are many countries that could be good or even offshore in blacklist.

Is Budget Dust usual for newly established Business?

Idea and budget go hand in hand when you want to start business. Even if you need only start capital for registration of your business, you should learn and know how to manage finance that probably will come soon.

Do not decline the opportunity to receive smart tips for keeping the flow of money strong. There are common money mistakes:

• Overspending during the first few years of business. Relentless optimism is superior but don’t be over confident. Do you understand what financial statements say? Do you speak in one language with your accountant?
• Overestimating business revenue.
• Not having a budget and reviewing it. Being all-in-one person will put your business on the line. You should recognize that you need help. This help could be outsourcing.
• No revenue forecasting. Process could be especially difficult in your first years of business because you don’t have past sales and result to compare with or as much experience to draw from.
• Not having a cash cushion. Be prepared for the worst case scenario.

How to avoid budget dust?

• Understand the financial statements you need as owner  like planned budget, profit and loss statement, balance sheet, statement of cash flow. Planning budget will help you figure out how much money you have, how much you need to spend, and how much you need to bring in to meet business goals.
• Decide what data do you need, what metrics you need to track for the long-term and short-term, and much more
• Use the financial data to help you make better business decisions during the year and review reports.
• Find the value of your time and price into products and services accordingly to increase profitability.
• Analyze financial metrics to decide when to outsource work to scale faster.
• Set up systems to review your finances regularly to track your progress toward your long-term and short-term goals.

Explore strategic ways to increase cash flow. Managing finance is one of the skills that you should improve because budget planning minimize risk to your business.

Intellectual property rights

Intellectual property rights are patents, copyrights, industrial design rights, trademarks, plant variety protection, trade dress, geographical indications, and trade secrets in some jurisdictions. There are also specialized or derived sui generis exclusive rights varieties, such as chain design rights and supplementary protection certificates for pharmaceutical products and database rights. The term "industrial property" is sometimes used to denote a broad subset of intellectual property rights, including patents, trademarks, industrial designs, utility models, service marks, trade names and geographical indications.

The main types

Patents

A patent is a right granted by the government to the inventor or successor in title, entitling the holder to exclude others from the manufacture, use, sale, offer and limited period of the invention. in exchange for disclosure of the invention.

Copyright

Copyright gives the original creator exclusive rights.

Trademarks

A trademark is a recognizable sign, design, or expression that separates the products or services of a particular merchant from similar other merchants or services.

Industrial Design Rights

Industrial design rights protect the visual design of objects that are not just utilitarian. An industrial design consists of the shape, color or shape of the shape, configuration or composition, as well as the three-dimensional form of the combination of the model and color, containing an aesthetic value.

Commercial dress

A commercial dress is a legitimate artistic term that usually refers to the visual and aesthetic qualities of a product or its packaging, which indicates the source of the product to consumers.

Trade Secrets

A trade secret is a formula, practice, process, design, tool, model, or compilation of information that is not generally known or reasonably determinable, with which an enterprise can gain an economic advantage over its competitors and customers.

Legal translation service

For short texts is easy to your online translators but when you need to translate identity documentation, financial documents, official reports, transcripts, filed patents, precedents and legal rulings and witness statements..without professional translation isn’t possible to do things correct.

Each country has its own set of regulations for legal translators and  legal matters vary from country to country, so only professional translators who specialise in the legal field should be with deep knowledge of the laws of the source and target countries/languages to avoid mistranslations. Translator, with no preliminary knowledge of law-related linguistics, risks making a faulty contract translation, potentially incurring legal consequences to the business.

Legal translation service refers to a wide range of documents belonging to the legal industry. These can include warrants, summons registration certificates, remittance drafts, corporate statutes or administrative texts, technical documents such as texts for a judicial purpose, minutes of court proceedings, agreements, articles of association (in case of company formation), as well as various business documents and blanks.

Legal translation is different from other forms of translation, as it relies on the utmost precision of conveying information and terminological correspondence, since incorrect translation may lead to significant legal incongruity, including law violations and lawsuits. Use services of professional translators.

I’m a self-employed

Independence is a new synonym for sole trader, because you run your own business as an individual and are self-employed. Let’s take a look on some things and characteristics that are connected with mentioned term:

• is the simplest form of establishment
• is intended for natural persons
• usually it can be registered online
• it does not require a minimum amount of capital
• you have less responsibilities
• less bureaucracy
• accounting depends on the form of taxation.
• the entrepreneur is liable with all his assets for obligations arising as a result of running the business
• the entrepreneur has the sole right to represent his activity
• the entrepreneur may be subject to VAT

Every country has some differences in procedure and applying criteria for this form of business.

Tax that self-employer should pay also differs from country. Self-employment gives more freedom to choose in what country to register  your status. You can compare and choose the most attractive for you and your profession.

Self-employers are brave people because they are personally responsible for any losses business makes. They play many roles in their business and it doesn't mean that businessmen are perfect in all. Smart self-employer are brave enough to ask for consultancy.

Structure of the Credit Report

It could be hard to hear “Excuse me, but we should because of your credit report”. Think about building credit report before that moment.

Credit report is detailed file of an individual's credit history. Credit report captures financial information that lenders use to determine your creditworthiness.

Credit score, also known as your FICO score, is the unit to determine how good is your credit report. It will go up or down based on many factors.

Credit report is like a pizza from many ingredients. So what “ingredients” should you take into consideration?

Personal identifying information: name, current and sometimes also past addresses, date of birth, social security numbers (if required) and employer information, marital status, contact information.

Accounts: Revolving credit and/or installment loans including account status, contact information, credit limits or loan amounts, recent payments.

Payment information:  the loan term, monthly payment, monthly payment information on all accounts, original loan amount/credit limit/high balance. Payment history has the most impact on your credit scores.

Public records: this is any legal obligations, including bankruptcies, tax liens, civil judgments.

Debts: on accounts, credit cards and auto or other loans.

Negative information: paying late ot not paying at all, collection accounts, settled accounts, defaulting on a loan.

Start this race for better credit score and fight for credit points not because you want to beat someone but because potential for your future.

Intellectual property

What is Intellectual property?

It is a category of property that includes intangible creations of the human intellect. Intellectual property includes two types of rights: industrial property rights (trademarks, patents, designations of origin, industrial designs and designs) and copyrights.

Purpose of Intellectual property?

Main purpose is to promote the creation of many intellectual goods. Law gives people and businesses property rights to information and intellectual products - usually for a limited time. It provides an economic incentive for their creation, as it allows people to benefit from the information and intellectual property they generate. It is expected that these economic incentives will stimulate innovation and promote technological progress in countries, which depends on the level of protection granted to innovators.

Industrial property

Industrial property is one of two subgroups of intellectual property, it has various forms, including patents for inventions, industrial designs, trademarks, service marks, the layout of the integrated circuit, trade name and designation, Geographical indications and unfair competition models. In some cases, the aspects of intellectual creation, although present, are less clearly defined.